Imagine receiving news that your grant application has been approved—it's like the moment a runner crosses the finish line after a gruelling marathon. While crossing the finish line signals the end of a marathon, securing grant funding is just the beginning of your journey toward making a lasting impact. 

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Many grantees struggle with managing grant funds which results in project failure. This is common for new founders or first-time grantees. If you don’t want to be one of such founders, let's get started on this step-by-step journey to effective grant management.

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1. Understand Grant Terms and Conditions

Grant terms and agreements are just like football rules. Just as you wouldn't play football without knowing what offsides and other offences are, you shouldn’t begin a grant-funded project without digesting the terms and agreements. 

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Before proceeding, carefully review the grant agreement. Familiarize yourself with key terms such as budget restrictions, reporting requirements, milestones, deliverables, and intellectual property rights. Create a grant agreement summary document highlighting key terms and conditions. Refer to this document regularly to ensure compliance.

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For example, let's say you're awarded a grant to develop a mobile health app in Nigeria. The grant agreement specifies that 70% of the funds must be used for software development, and you must submit quarterly progress reports. Understanding these terms ensures you allocate funds correctly and meet reporting requirements.

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2. Setup and Implement Robust Financial Tracking

As stated earlier, securing funding is the beginning of a journey. Now imagine losing track of expenses and struggling to reconcile accounts. Don't let this happen! You need clear markers to know where you are and where you're going. Your financial tracking system is that marker. 

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Establish a reliable financial tracking system to monitor your expenditures against the approved budget. Maintain detailed records of transactions, invoices, receipts, and financial reports. This way you are prepared to show where the money went. You should consider using accounting software to streamline your financial tracking and reporting.

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For instance, let's say you're managing a grant to build a solar-powered water treatment plant in Fiditi. You cannot manually keep tabs on every penny spent because they are most likely voluminous. Hence, you must have set up a financial tracking system to record all your expenses, from equipment purchases to labor costs. 

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3. Adhere to Reporting Deadlines

When it comes to catching a flight, you know what it means to show up at the airport after your plane has left. Replace the flight with your grant reporting deadline. Missing a reporting deadline will jeopardize your project's next tranche of funding (for funders that disburse in tranches, and that’s most funders). 

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All grants come with reporting requirements and deadlines. To avoid missing a deadline, prepare and submit accurate financial and progress reports promptly to maintain transparency and compliance. This shows funders that you're reliable and serious about achieving your project's goals. 

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Let's say you're required to submit a midterm progress report for your education project by June. Create a reporting calendar to ensure timely submission of reports. Plan, allocate sufficient time, and be ready to submit ahead. Allocate at least two weeks ahead for report preparation to avoid last-minute rush.

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4. Stay in Touch with Your Funders

To nurture a seed to a fully grown plant, you need to water it regularly. Open and scheduled communication is the regular watering needed to take you from being a one-time grantee to a multiple multi year grantee with a good relationship with your funder. Not communicating with your funder can tamper with your future funding. 

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How do you do this? Maintain open communication with the grant funder throughout the project lifecycle. Update your funders on your successes and challenges. They are your partners in making a difference. Do not keep them in the dark. Schedule regular check-ins with your funders to ensure open communication. 

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Again, notify them promptly of any deviations from the budget in the case of unforeseen challenges. Never assume you are solely in charge; seek their guidance when needed. For instance, if your farming project in Daura encounters an unforeseen challenge like bandits or cattle rustlers invasion, do not just spend on getting new farmland and inputs. You should communicate with your funder. Explain the situation and seek their guidance on moving forward.

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5. Build Capacity for Future Grants

Sharpening tools prepare a warrior for current or future battles. Building your organization’s capacity from within positions you for future funding. Remember that you can be simultaneously funded by two funders. Can you manage such? Think ahead!  

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Develop a grant management framework that can be replicated for future grants. Train your staff members on grant management to ensure continuity and enhance your organization's credibility. Your investment in training your team on financial best practices and compliance with grant funding equips them with the skills needed to handle future grants confidently. If you are ready to upgrade your grant writing and management skills, check out Grant Success School.

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Conclusion

Your project success as well as your relationship with funders hangs on your grant funding management expertise and experience. For new founders and first-time grantees who lack the expertise and experience, following the steps in this blog post will guide you to managing grant funds efficiently and achieving your project goals. Remember, grant management is a skill that can be developed with practice. Start with your self-funded projects. 

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